September Industry News Update

Every month, we’ll be sharing some of the top stories in logistics and transportation right here on our blog. Here’s a look at some of the top industry stories making headlines in September.

ELD Mandate Protests Could Cause Capacity Issues

A trucker protest called “Operation Black and Blue” is scheduled for October 3 to 8 in Washington, D.C., with some truckers staying home to participate from afar.

Organizers state that the strike is “an attempt to gain the attention of our members of Congress that have refused to hear our grievances about the mandatory use of Electronic Logging Devices.”

Protests like this one happen frequently, and it’s difficult to predict the level of participation and impact it will have on the market. This particular protest seems to have gained a significant amount of momentum in the past few days. It’s possible that the protest could impact spot market rates this week.

The Federal Motor Carrier Safety Administration (FMCSA) will be hosting a two-day event at the Davis Travel Center off of I-95 in Stony Creek, VA from October10 to 11. This event is part of FMCSA’s national ELD education tour and will include “subject matter experts” to discuss ELDs and answer any questions drivers have.

A presentation will be streamed live and the education tour will make stops in three other cities. For more information and locations, read here.

A Surge in Freight Demand Brings Tighter Capacity and Higher Rates for Fall

Truck volume rose 7.1 percent in August from July, 8.2 percent year over year, according to the American Trucking Association. Seeing a surge in freight demand during August should alert shippers concerned with tightening capacity and rate increases this fall, according to JOC.

An early kickoff to the season, combined with continued outfall from Hurricanes Harvey and Irma, could cause capacity tightening to be more sudden than gradual.

Truckstop.com estimates Hurricane Harvey will use up to 7 percent of truck capacity for several months to come.

To read more about the unusual freight surge in August and its impacts, visit here.

Supply Chain Impact Before, During, and After Hurricane Irma

Those in the supply chain industry are probably consistently questioning the impacts that a natural disaster will have on a supply chain. Those who have already experienced impacts in the past may be more likely to prepare in advance.

Read more about the proactive and reactive responses to Hurricane Irma here.

Uberization of Freight Developing as Uber Remains in Trouble

The Uberization of freight, or booking freight shipments through a mobile app, is gaining traction despite recent troubles for Uber.

According to Forbes, supply chain professionals who view uberization favorably has quadrupled since 2014.

Uber itself is facing troubles as Transport for London decided not to renew its operating license, claiming the company is not a “fit and proper” private car hire operator, according to The Guardian.

Uber will also have to leave Quebec October 14 if the Ministry of Transportation moves forward with proposed regulations that would impose intensive training obligations.

To read more about Uber and uberization of Freight developments, click here.

As Trucks Get More Efficient, Railroads’ Competitive Edge is Eroding

Advances in trucking technologies are challenging the locomotive industry. Over the course of time, railroads have experimented with alternative fuels and new technologies for better fuel efficiency, reducing greenhouse gases, and lower operating costs. Large satisfaction has been seen with fuel efficiency improving each time diesel-electric locomotives have been updated to comply with EPA regulations.

The trucking industry has made larger strides with technologies such as, electric and autonomous technologies, as well as well as experimenting with natural gas and hydrogen fuel cells.

Railroads are facing an aggressive competitor working across multiple technologies. Read more here.

Diesel Up .4 Cents to $2.792 a Gallon

The average price of a gallon of diesel is up to $2.792 a gallon at September’s end, with oil dropping closer to $50 a barrel.

Diesel costs a little over 40 cents more than it did this time last year, according to the Department of Energy.

To read more about the economic impact of the rise in oil prices, click here.

The Electronic Logging Device ruling has been finalized, appeals have …Read More

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